Project marks the emergence of Johor as a major O&G regional player

JOHOR BARU (Thursday ¨C 26 April 2012): The Independent Deepwater Petroleum Terminal (IDPT) project in Pengerang will open for commercial operations by early 2014.

Work on the project, which began last July is now progressing as scheduled with Phase1 involving an investment of RM1.9 billion due for completion by the end of next year.

To date, more than 60ha (150-acres) of the Tanjung Kapal coastline in Pengerang have already been successfully reclaimed, where a modern jetty terminal will be built with seven berths of up to 24-metre depths.

The terminal will also have facilities for the storage of petroleum products with an initial capacity of 1.3 million cubic metres (cbm), with provisions for expansion by a further 1 million cbm.

The IDPT development in the initial phase will provide storage, blending and distribution services for crude and clean petroleum products. Very Large Crude Carriers (VLCCs) will be able to berth and offload cargoes once the terminal and related facilities are up and running by early 2014.

The Pengerang IDPT is one of Malaysia¡¯s key economic transformation projects designed to develop and reposition Southeast Johor into a leading oil storage and trading hub in the region.

Johor Menteri Besar Datuk Abdul Ghani Othman today officiated at the ground-breaking ceremony for the IDPT in Pengerang, about 125km from here.
Dialog Group Bhd, the Johor Government and Royal Vopak Nv are spearheading this RM5 billion development ¨C the third oil storage and terminal project in Johor after the Tanjung Bin Terminal near the Port of Tanjung Pelepas and the Tanjung Langsat Terminal near Pasir Gudang.

Vopak, headquartered in Rotterdam in the Netherlands, is the world¡¯s largest independent tank terminal operator. Dialog and Vopak are also partners in Kertih Terminal Sdn Bhd in Terengannu.

Under the IDPT corporate structure, Dialog and Vopak hold 51-per cent and 49-per cent respectively in Pengerang Terminals Sdn Bhd. This joint-venture company in turn owns 90-per cent of Pengerang Independent Terminals Sdn Bhd (PITSB).

PITSB is the special purpose vehicle which will spearhead the IDPT. The Johor Government, through State Secretary Johor Incorporated (a State investment arm) holds 10-per cent equity in the company.

¡°Today, we are one step closer to realising our vision of becoming a regional player in the storage, processing and trading of oil,¡± said Ghani, adding that both the Federal and State Governments were committed to making this a reality.

¡°Oil and gas has served us well as a nation. But it is time now to tap into our strength in this sector and leverage on our unmatched natural and strategic advantages to position South Johor as a world leader in this booming industry,¡± he said.

Also present at the ground-breaking ceremony were Dialog Group executive chairman Ngau Boon Keat, Vopak (Asia Division) president Patrick van der Voot, senior regional executives from the Asian Oil & Gas industry, bankers, fund managers, local politicians and community leaders.

Pengerang, a charming coastal fishing town popular for its seafood restaurants, is endowed with the best natural attributes in Asia for the development of the IDPT.

¡°Besides abundant land for development, Pengerang is also strategically located near major international shipping lanes, has 24-feet deepwater port facilities and is close to demand centres in the Middle East, India and China,¡± noted Ngau, ¡°Pengerang has what it takes to grow to become a large petroleum, petrochemical and LNG trading hub within the next five to 10 years,¡± he said.

The Pengerang development masterplan envisages the creation of a new O&G industrial town for the storage of crude oil and LNG and supported by a modern jetty terminal.

Petronas is also building its refinery and petrochemical integrated development (Rapid) complex in Pengarang at an estimated investment cost of RM60 billion.

The planned crude oil refining capacity of Rapid will be even larger than the combined capacities of Petronas¡¯ existing refineries in Malacca and Kertih.
A liquefied natural gas (LNG) regasification facility is also being built in Pengerang to supply gas to industrial and domestic users. -- Ends --

About Dialog Group Berhad:
Listed on the Malaysia Stock Exchange in 1996, Dialog Group Berhad  has grown to become an integrated specialist technical services provider in the oil, gas and petrochemical industry providing services to the upstream and downstream sectors by working together with strategic and technology partners.This strategy will enable DIALOG to concentrate on the main business, while incorporating technology,experience and expertise from alliance partners.The market capitalisation of DIALOG stood at RM5.2 billion as at  31 March 2012.

About Royal Vopak Nv:
Royal Vopak is the world's largest independent tank storage service provider, specializing in the storage and handling of bulk liquid chemicals, gases and oil products. Vopak operates 83 terminals (including Vopak Terminal Amsterdam Westpoort) in 31 countries with a storage capacity of 27.2 million cubic meters. Through the previously announced projects under construction, Vopak will add 6.1 million cubic meters to its total storage capacity for bulk liquids on a global scale in the coming years, leading to a total storage capacity of more than 33 million cubic meters in 2014. The terminals are strategically located for Vopak¡¯s customers along the major shipping routes. The majority of its customers are companies operating in the chemical and oil industries, for which Vopak stores a large variety of products destined for a wide range of industries.

About SSI
This is an investment company of the State Government of Johor, involved in strategic partnerships with major developers and corporations to develop and harness Johor¡¯s rich natural resources. It is dedicated to enhancing Johor¡¯s asset value for the progress and development of the State and the people of Johor.

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